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Margaret Mary Asst. Professor
Maharani’s Commerce & Mgt. College for
Women, Mysore
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Hypothesis is considered as principal instrument
in research.
It paves the way for new experiments and
observations.
Hypothesis is tested on the basis of available
information.
It is widely used in Social Science where direct
knowledge of population is rare.
Decision can be made on the basis of sample
data.
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A set of logical and statistical guidelines used to
make decisions from sample statistics to
population characteristics.
A predictive statement capable of being tested by
scientific methods
A Hypothesis is the statement or an assumption
about relationships between variables.
A Hypothesis is a tentative explanation for certain
behaviors, phenomenon or events that have
occurred or will occur
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Bankers assumed high-income earners are more
profitable than low-income earners.
Old clients were more likely to diminish CD
balances by large amounts compared to younger
clients.
This was non-intrusive because conventional
wisdom suggested that older clients have a larger
portfolio of assets and seek less risky investments
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Null Hypotheses &Alternate Hypotheses
Level of Significance
Critical Region
Decision Rule(Test of Hypothesis)
Type I & Type II Errors
Two Tailed & One Tailed Tests
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Types of Hypothesis
• Null Hypothesis (H0)
• Alternative Hypothesis (Ha or H1)
Each of the following statements is an example of a null
hypothesis and alternative hypothesis.
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Determined in advance before testing of
Hypothesis.
Maximum value of the probability of
rejecting H0 when it is true
Some percentage i.e. 1%,5%,10%
Risk of rejecting null hypothesis when it is
true.
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Whether the test involves one sample or
two Samples ?
Whether two or more samples used are
independent or related?
Is the measurement scale nominal,
ordinal, interval, or ratio?
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Accept H0 if the test statistic value falls
within the area of acceptance.
Reject otherwise.
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